Vietnam’s TH Group to start work on billion dollar milk processing and dairy farm project in Russia

Vietnamese dairy producer TH Group plans to hold a groundbreaking ceremony next week to begin work at its milk processing plant and dairy farm project in Russia, which is worth billions of dollars, a Vietnamese government statement showed Saturday.

In November last year, TH’s chairman Thai Huong announced at an event in Moscow that the Vietnamese private company will invest around $2.7 billion in 10 years to set up a complex comprising milk processing and animal feed plants and dairy farms in Russia’s Moscow and Kaluga provinces. Moscow province, or Moscow Oblast, is the surrounding area of the Moscow capital.

In the first phase, TH will pour $500 million to establish dairy farms which can raise 45,000 cows, build a milk processing plant with capacity of 800 tons/day and animal feed mill with capacity of 400,000/year, the company said in a statement March 24 this year.

Vietnam currently has 20 projects in Russia with total registered investment of $2.93 billion, higher than Russia’s registered investment of $2 billion in 114 projects in Vietnam, the government statement said.

TH Group’s Hanoi office could not be immediately reached for comment.

Vietnam’s Prime Minister Nguyen Xuan Phuc is scheduled make his first foreign visit to Russia next week, from May 16-20.